While driving my Greek friend to the airport the other day, I asked her what impressed her the most about her most recent visit to America.
"The fear," she quickly told me. "Everyone is fearful."
That’s interesting because the Housing Bubble is quoting Economist Edward Leamer, director of the UCLA Anderson Forecast, who is saying pretty much the same thing.
"The news is all fear, fear, fear," he says.
I agree that everyone is scared, but I’m not totally fearful. I know of one man who made $4 million in the stock market legally in a few weeks recently. I know real estate fortunes will be made in the next few years.
Why? Because history repeats itself. It’s happened before, it will happen again. You just can’t let fear control you no matter what kind of situation you find yourself in at the moment.
So reading Housing Bubble’s blog I was impressed with his real estate reports from different parts of the country.
For example, people are stacking up like airports in housing because of high mortgages. The old concept of taking in boarders in once again in vogue.
Some of the smart distressed homeowners are renting out their unsalable homes.
That works for professional landlords like us but if you haven’t had landlording experience it could become a disaster unless you get very lucky with your tenants.
All of this is telling me real estate is still the best asset during these difficult times and yes, we are in a recession. From the reports I’m reading this recession is predicted to last 2 years and when we come out of it we’ll jump right into serious inflation. Real estate is one of the safest places to put your cash.
Housing Bubble has a lot more info so if you want to know more go to When It Goes Bad You Dump It